No federal legislation exists requiring equal health coverage for domestic partners.
As of 2010, there were no federal regulations requiring employer health insurance benefits for non-married partners. Some states have enacted legislation that requires equal insurance coverage for domestic partners. The rules that apply to domestic partner coverage, however, are not uniform and vary by state. Some employers opt to offer coverage for domestic partners. They must follow applicable state and federal laws regarding domestic partnerships. However, many employers determine the exact criteria for qualification as a partner.
Qualification as a Domestic Partner
Domestic partners are most often defined as two unrelated and unmarried adults of the same or opposite sex in a committed, exclusive relationship. They must also share the same residence and be jointly financially responsible for living expenses. Some employers limit coverage of domestic partners to same sex partners, citing that opposite sex partners have the obligation to get married. This is an issue that continues to be challenged in court. Some states, including Washington, that have mandated health coverage for domestic partners require registration of the partnership.
Insurance Coverage
Health insurance coverage for un-married partners varies. California was the first state to enact legislation that requires equal coverage for domestic partners. Several states now have similar legislation. In most states with this type of legislation, domestic partners are eligible for the same benefits as a married spouse, so long as they meet the other criteria of a domestic partnership. No employer is obligated to provide health insurance for employees, their partners, spouses or dependent children. However, the decision is often made to cover partners to increase enrollment in the health plan.
Disadvantages
Same-sex couples are not treated as spouses under federal tax laws. This means that health insurance benefits for same-sex domestic partners is taxable income regardless of state domestic partnership laws. The employee will be taxed on the benefits paid by the employer for the partner's health coverage. Dependent domestic partners are the only exception. To qualify as a dependent, same-sex domestic partner, the individual must receive more than half of his support from the employee and permanently reside with the employee.
Proof of Domestic Partnership
Some employers require detailed information about the domestic partnership before extending coverage to an employee's partner. With the new health care reform, insurers are required to extend benefits for dependents until the age of 26 years. This legislation will result in an estimated 9 percent increase in health care plan expenditures by 2011. Many insurers will be demanding proof of eligibility. This may include affidavits or other evidence that establish proof of domestic partnership.
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